E05 PDF Dumps Dec 20, 2023 Exam Questions – Valid E05 Dumps
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NEW QUESTION # 22
John owns stock that he intentionally insured for £15,000, although the full value of the stock is £18.000. His insurance policy has no excess and is subject to a pro rata condition of average. In the event of water damaging
£6.000 of John's stock, how much will the insurer pay for a valid claim after the application of average?
- A. £3,000
- B. £6,000
- C. £5,000
- D. £15,000
Answer: C
NEW QUESTION # 23
Two liability policies with different insurers cover the same loss of £15,000,000. The limit of liability is
£10,000,000 under policy X and £20,000,000 under policy Y. Neither policy has a non-contribution clause.
What amount will policy Y contribute towards the claim payment?
- A. £10,000,000
- B. £7,500,000
- C. £5,000,000
- D. £9,000,000
Answer: D
NEW QUESTION # 24
For this question more than 1 option is correct. You must select all the correct options to gain the mark. In a consumer insurance policy, a warranty can arise as
- A. a continuing warranty.
- B. a basis of the contract clause.
- C. an exception clause.
- D. an express term.
Answer: B,D
NEW QUESTION # 25
For this question more than 1 option is correct. You must select all the correct options to gain the mark. What are the characteristics of a corporation aggregate?
- A. It is a legal person representing one official position.
- B. It is answerable to its shareholders or members.
- C. It is not treated as a separate legal entity.
- D. It is an organisation with a separate legal existence to its membership.
Answer: B,D
NEW QUESTION # 26
When, if at all, does the duty of fair presentation of a risk apply after a non-consumer insurance contract has been formed?
- A. Where there is a variation in the insured risk.
- B. On submission of a claim.
- C. It does not apply as the duty is to take reasonable care not to make a misrepresentation.
- D. From the date of a breach of warranty.
Answer: A
NEW QUESTION # 27
Tim is a local insurance broker. He has authority to receive premiums for a personal lines insurer and earns commission from the insurer for sales. Paul, an elderly customer, asked Tim for advice regarding his personal insurance requirements and to assist with completing the proposal form for household insurance. In these circumstances, who, if anyone, is Tim's principal?
- A. The insurer at all times.
- B. Paul as it is a consumer contract.
- C. Both the insurer and Paul at different times.
- D. No one as Tim is not a party to the insurance contract.
Answer: A
NEW QUESTION # 28
The test of the materiality of facts in an insurance contract is defined according to the opinion of a
- A. reasonable person.
- B. honest proposer.
- C. diligent broker.
- D. prudent underwriter.
Answer: D
NEW QUESTION # 29
A warranty in Emily's personal travel insurance policy states that cash must be kept in a locked safe. Whilst on holiday, a storm destroys her hotel and its contents. When Emily completes a claim form for loss of money, she admits that her cash was NOT locked in the safe. What will be the insurer's likely response to her claim for the lost money?
- A. Pay the claim in full.
- B. Avoid the policy ab initio.
- C. Reject the claim for breach of warranty.
- D. Make an ex-gratia payment.
Answer: A
NEW QUESTION # 30
According to statute law, an unfair term in a consumer insurance contract is defined as one which
- A. has been individually negotiated and is to the detriment of either one of the parties.
- B. causes a significant imbalance in the parties' rights to the detriment of the consumer.
- C. provides insurance where the scope of cover is narrow compared to the premium charged.
- D. does not restrict liability for death or personal injury.
Answer: B
NEW QUESTION # 31
A person insures her own life under a life insurance policy but does so expressly for the benefit of another. To facilitate this, which type of arrangement is most commonly established?
- A. Power of Attorney.
- B. Coinsurance.
- C. Lien.
- D. Trust.
Answer: D
NEW QUESTION # 32
Adam was bitten by a stray dog in Africa. He washed his wound in a pond and a week later he became very ill with a high temperature. Initially, the local hospital treated him for malaria and later treated him for the fever following the dog bite. Adam died in hospital. What is the proximate cause of his death?
- A. The delay in seeking medical treatment.
- B. The original physical injury of the dog bite.
- C. The delay in obtaining the correct medical treatment.
- D. The unhygienic washing of the dog bite.
Answer: B
NEW QUESTION # 33
When a defendant deliberately destroys possessions belonging to someone else, he has committed the tort(s) of
- A. trespass to goods only.
- B. trespass to goods and conversion only.
- C. trespass to goods, conversion, nuisance and battery.
- D. trespass to goods, conversion and nuisance only,
Answer: A
NEW QUESTION # 34
Who is entitled to the surplus if a subrogation recovery from a negligent third party is greater than the amount the insurer has paid to the insured?
- A. The insurer only.
- B. The State
- C. The insured only.
- D. It is shared between the insurer and the insured.
Answer: C
NEW QUESTION # 35
For this question more than 1 option is correct. You must select fill the correct options to gain the mark. In what circumstances would an agency agreement be automatically terminated?
- A. Disclosure of the name of the principal.
- B. Death of the agent.
- C. Bankruptcy of the agent.
- D. Bankruptcy of the principal.
Answer: B,D
NEW QUESTION # 36
For this question more than 1 option is correct. You must select all the correct options to gain the mark. What are the characteristics of an express term in reaching or recording an agreement?
- A. It will usually override any implied term which conflicts with it.
- B. It must be evidenced in documentary form.
- C. It may be implied by conduct.
- D. It may be oral or in writing.
Answer: A,D
NEW QUESTION # 37
For this question more than 1 option is correct. You must select all the correct options to gain the mark. What are the main sources of new English Law?
- A. Legislation.
- B. Case law.
- C. Official law reports.
- D. International treaties.
Answer: A,B
NEW QUESTION # 38
A professional indemnity policy includes a condition requiring that the insured must give prompt notice of any circumstance that could give rise to a claim. What type of condition is this?
- A. A condition precedent to the contract.
- B. A condition precedent to liability.
- C. A collateral condition.
- D. A suspensive condition.
Answer: B
NEW QUESTION # 39
How can an agency relationship be best described?
- A. A person has transferred his obligations under a contract to another party.
- B. A person, who has paid another party under a contract, has the right to stand in the place of that other party and avail himself of the rights and remedies of that party.
- C. A person has ratified another party's action.
- D. A person has the authority to act on behalf of another party.
Answer: D
NEW QUESTION # 40
What is the intended purpose of a subrogation waiver clause in an insurance po
- A. The doctrine of subrogation is excluded from the policy.
- B. The insurer's subrogation rights will not be exercised against certain parties associated with the insured.
- C. Cover is suspended whilst the insurer pursues an action for subrogation.
- D. The insured has a duty to ensure that the insurer's subrogation rights are maintained.
Answer: B
NEW QUESTION # 41
A claimant may possibly recover money transferred under an illegal contract when
- A. both parties to the contract are equal in wrongdoing.
- B. the legal portion of the contract can be severed from the illega portion.
- C. the contract is against public policy but not substantive law.
- D. the illegality makes the contract voidable rather than void.
Answer: A
NEW QUESTION # 42
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